RMC No. 39-2022: Prescribes the manner of payment of penalty relative to violations incurred by Registered Business Enterprises under the Information Technology-Business Process Management sector on the conditions prescribed regarding Work-From-Home arrangement

Key points

1. Uniform payment form. RMC No. 23-2022 allowed BIR Form No. 1702-MX for RBEs with no regular Income Tax transactions. To avoid confusion, all RBEs now pay with BIR Form No. 0605, choosing Others under Voluntary Payment and entering the phrase Penalty pursuant to FIRB Res. No. 19-2021. The tax type code stays IT and the ATC is MC 200.
2. Annual return. RBEs with Income Tax Holiday file BIR Form No. 1702-EX, and those with Gross Income Tax incentive or mixed transactions file BIR Form No. 1702-MX. They must complete the information on allowable deductions: Part VI-Schedule I for Form 1702-EX and Part IV-Schedule 5 for Form 1702-MX.
3. Computation and deadline. RBEs compute the penalty as presented in the Circular and pay within thirty (30) days after the due date for payment of Income Tax. Payment beyond that period brings administrative penalties because the penalty pertains to Income Tax.

Who is affected

• IT-BPM sector Registered Business Enterprises that violated work-from-home conditions

Deadlines and effectivity

• Penalty payment within thirty (30) days after the due date prescribed for payment of Income Tax